Attorneys’ Trust Accounts Audits
Purpose of an Engagement on Attorneys Trust Accounts
The main purpose of an engagement on attorneys’ trust accounts is for the auditor to express a reasonable assurance opinion on whether, for the relevant financial period, the attorney’s trust accounts were maintained in compliance with the Act and the Rules.
The secondary purpose is for the auditor to agree with the information extracted from the accounting records and included in the Attorney’s Annual Statement on Trust Accounts to the underlying records that were the subject of the engagement on the compliance of attorneys’ trust accounts with the Act and the Rules, and then to report as required.
There is an expectation by the Attorneys Fidelity Fund, the Law Societies, financial institutions, attorneys’ clients and members of the public that the auditor of attorneys’ trust accounts will detect fraud and theft, whereas the main objective of an engagement on attorneys’ trust accounts is for the auditor to evaluate whether an attorney’s trust accounts were maintained in compliance with the Act and the Rules.
Krona’s Audit Engagement
The engagement on attorneys’ trust accounts to report compliance with the Act and the Rules is a reasonable assurance engagement within the scope of the International Standards on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE) 3000 (Revised).
Although International Standards on Auditing (ISA) and International Standards on Review Engagements (ISRE) do not apply to engagements covered by ISAEs, they may nevertheless provide guidance to Krona in this engagement.
These processes and procedures will allow Krona to perform the assurance engagement for your trust account in compliance with The Attorneys Act, No. 53 of 1979 and in compliance with the Law Society relevant to your practice.